Hybrid Cars, Tax Incentives and Auto Insurance Discounts

The recent spike in the price of gasoline and oil has led many people to run for hybrid cars and SUVs. Such vehicles are not only great for the environment, but they can be a good deal for your wallet as well. There are a number of tax breaks and car insurance discounts that apply to hybrid cars and trucks, and those incentives can significantly boost the value of these already economical vehicles.

Hybrid Cars

Some insurance companies now offer owners of hybrid vehicles car insurance discounts of up to 10%, meaning that hybrid owners can put money into their pockets instantly and benefit from lower premiums down the road as well.

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Tax Incentives

These discounts for hybrid vehicles make sense from the point of view of the insurance company because such vehicles tend to fall into the preferred insured category, meaning that they are generally owned by mature and responsible drivers, and these drivers are statistically less likely to file costly claims.

What sets hybrid cars apart is their new technology, and these cars are designed to run on a combination of gasoline and electricity. During low speed driving, the cars tend to run almost entirely on electricity, with the gasoline motor kicking in at higher speeds. This technology results in much better gas mileage, lower emissions and great overall efficiency.

Auto Insurance Discounts

In addition to their efficiency, hybrid cars can offer their owners a number of important tax incentives. Depending on the model, owners of hybrid vehicles may be eligible for a tax credit of between $250 and $3,400, resulting in significant savings both on gasoline and on taxes.

So, if you have been considering buying a hybrid vehicle to save on gasoline costs, now may be a great time to act. Not only can hybrid vehicles help save drivers money on gasoline, but they can provide significant savings on taxes and insurance as well. If you are thinking of buying a hybrid vehicle, be sure to check with your tax accountant and your insurance agent. You may be surprised at just how affordable such a great car or truck can be.